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Why The New iPod Touch Tells Us The Likely Cost Of The iPad Mini

Today was all about the new iPhone. Soon, though, it will be the turn of the mythical iPad Mini to present itself to an eager public. Nothing was said today about the potential 7.85 inch screened iOS tablet. But after today’s presentation, perhaps we can make some educated guesses at one area of contention around the iPad mini.

How much it will cost.

The big indicator for me was the reworked iPod Touch. Sporting the new screen technology also carried in the iPhone 5, the ‘Lightning’ 8-pin dock connector, and Siri, the iPod Touch is almost a blueprint for an iOS powered tablet. It just needs to be physically a touch bigger.

I don’t see the entry-level iPad Mini starting with the same 32GB of storage as the new iPod Touch, because Apple will not want to undercut the spec or price of the new iPod Touch. Which implies that basic unit’s storage capacity will be 16GB.

Neither do I think that Apple is going to try to get into a price war. Tim Cook will want to retain the pricing premium they have over other tablets, because Apple’s business model has always been to profit on the hardware sales. The Mini isn’t going to match the $199 price point of the Nexus 7 or the Kindle Fire.

Apple like to have clear price brands for their electronics, with clear steps of $100 between different memory sizes and different products. Line everything up, look for the gaps, and there’s your iPad Mini.

From the evidence today, I’d expect to see a 16GB iPad Mini with Wi-Fi connectivity to launch at $299, with a 32GB model at $399, and a 64GB model at $499.

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